NOTE 3:

MINERAL RIGHTS AND PROPERTIES

Mineral Rights

At April 30, 2016, the Company had mineral rights in the States of Arizona, Colorado, New Mexico, Texas and Wyoming and in the Republic of Paraguay. These mineral rights were acquired through staking, purchase or lease agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium. At April 30, 2016, annual maintenance payments of approximately $2,500,000 were required to maintain these mineral rights.

Mineral rights and property acquisition costs consisted of the following:

	April 30, 2016		July 31, 2015
Mineral Rights and Properties
Palangana Mine	$	6,562,348	$	6,587,135
Goliad Project		8,689,127		8,689,127
Burke Hollow Project		1,495,750		1,495,750
Longhorn Project		116,870		116,870
Salvo Project		14,905		14,905
Nichols Project		154,774		154,774
Anderson Project		9,154,268		9,154,268
Workman Creek Project		1,472,008		1,472,008
Los Cuatros Project		257,250		257,250
Slick Rock Project		615,650		661,271
Yuty Project		11,947,144		11,947,144
Coronel Oviedo Project		1,133,412		1,133,412
Other Property Acquisitions		244,827		285,741
		41,858,333		41,969,655
Accumulated Depletion		(3,929,884)		(3,929,884)
		37,928,449		38,039,771

Databases		2,410,038		2,410,038
Accumulated Amortization		(2,314,890)		(2,166,966)
		95,148		243,072

Land Use Agreements		404,310		390,155
Accumulated Amortization		(264,821)		(235,031)
		139,489		155,124
	$	38,163,086	$	38,437,967

The Company has not established proven or probable reserves, as defined by the SEC under Industry Guide 7, for any of its mineral projects. The Company has established the existence of mineralized materials for certain uranium projects, including the Palangana Mine. Since the Company commenced uranium extraction at the Palangana Mine without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated.

During the nine months ended April 30, 2016, the asset retirement obligations (“ARO”) of the Palangana Mine were revised due to changes in the estimated timing of restoration and reclamation of the Palangana Mine, resulting in the corresponding mineral rights and properties being reduced by $24,787, and a credit amount of re-valuation of ARO totaling $184,381 being recorded against the mineral property expenditures for the Palangana Mine. Refer to Note 9. Asset Retirement Obligations.

During the nine months ended April 30, 2016, the Company abandoned certain mineral interests at projects located in Colorado and New Mexico having a combined acquisition cost of $86,535. As a result, an impairment loss on mineral properties of $86,535 was reported on the consolidated statement of operations for the nine months ended April 30, 2016.

During the three and nine months ended April 30, 2016, the Company continued with the strategic plan for reduced operations implemented in Fiscal 2014 and further reduced operations at the Palangana Mine to capture residual uranium only. As a result, no depletion for the Palangana Mine was recorded on the Company’s consolidated financial statements for the three and nine months ended April 30, 2016.

Mineral property expenditures incurred by major projects were as follows:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2016		2015		2016		2015
Mineral Property Expenditures
Palangana Mine	$	280,345	$	500,535	$	1,031,625	$	1,621,391
Goliad Project		26,848		25,631		71,679		79,924
Burke Hollow Project		48,409		94,702		974,661		1,235,250
Longhorn Project		247		22,276		4,620		52,999
Salvo Project		4,622		16,751		21,697		39,590
Anderson Project		3,564		50,142		170,780		173,564
Workman Creek Project		418		-		32,109		31,300
Slick Rock Project		-		2,924		53,861		52,708
Yuty Project		89,246		41,274		291,788		301,035
Coronel Oviedo Project		136,031		132,315		422,763		428,077
Other Mineral Property Expenditures		136,238		159,292		517,611		544,403
Re-valuation of Asset Retirement Obligations		-		-		(184,381)		-
	$	725,968	$	1,045,842	$	3,408,813	$	4,560,241